Mini Feature CREDIT CARDS & SCORES

By: Dr K C Gupta, YBB Personal Finance

CONTRARIAN INDICATORS

AAII Bull-Bear Spread -2.8% (below average)
CNN Fear & Greed Index 38 (fear)
NYSE %Above 50-dMA 52.88% (positive)
SP500 %Above 50-dMA 56.00% (positive)

ICI Fund Allocations (Cumulative), 4/30/26
OEFs & ETFs: Stocks 62.61%, Hybrids 3.96%, Bonds 17.12%, M-Mkt 16.31%

INTEREST RATES

CME FedWatch
Cycle peak 5.25-5.50%
Current 3.50-3.75%
FOMC 7/29/26+ hold
FOMC 9/16/26+ hike

Treasury

T-Bills 3-mo yield 3.83%, 1-yr 4.00%; T-Notes 2-yr 4.19%, 5-yr 4.23%, 10-yr 4.46%; T-Bonds 30-yr 4.90%;
TIPS/Real yields 5-yr 1.96%, 10-yr 2.21%, 30-yr 2.70%
FRNs Index 3.674%

Bank Rates www.depositaccounts.com/

Stable-Value (SV) Rates, 6/1/26
TIAA Traditional Annuity (Accumulation) Rates
Restricted RC 5.25%, RA 5.00%
Flexible RCP 4.50%, SRA 4.25%, IRA-101110+ 3.65%
TIAA MYGA 4.35% (3-yr), 4.50% (5-yr), 4.60% (7-yr)
TSP G Fund 4.500% (previous 4.500%)

India Fear & Greed MMI 67.64 (greed-high)
Weekly ETFs: INDA +2.59%, INDY +2.11%, EPI +2.26%, INDH +1.36% | SPY +0.93%

The data above are as of Sunday preceding the publication date.

GEOPOLITICS. US-Iran deal & opening of the Strait of Hormuz will benefit Indian economy, markets & rupee. Hopefully, it will last. India & most EMs were hurt badly by the Iran war. India ETFs in US include the largest, market-cap weighted INDA, earnings-weighted EPI & rupee-hedged tiny INDH.

CONSUMERS. Food ingredients, sweeteners & industrial starches supplier Ingredion/INGR (US) has announced a joint-venture (JV), 9% stake & partnership with Indian Sanstar.

IT/TECH

UK will block Sunil Bharti MITTAL’s (Bharti Enterprises) bid to raise its BT Group (telecom) stake from 24.95% to 29.9% citing telecom as critical infrastructure. In UK, 25%+ ownership triggers a government review & 30%+ ownership triggers a full takeover offer. Sunil Mittal also serves on BT board. A UK government source said that it’s just being cautious despite prior indications that Bharti Enterprises wasn’t interested in acquiring BT.

HUMANOID robots have been topics of science fiction, novels, movies & TV shows. Now, service humanoids have become reality as costs have come down – for restaurants, hospitals, trade shows & homes.
US DOD is also interested in military humanoids that Foundation Future Industries (04/2024; CEO Sankaet PATHAK) is developing for dual industrial & military use. Company has tested some military humanoids in Ukraine (model Phantom MK-1) & is developing an improved model Phantom 2. Eric TRUMP is an investor & strategic advisor. China is also developing military robots. In future, there may be autonomous AI/robotic wars. The CEO formerly ran fintech Synapse, a unicorn that collapsed into bankruptcy in 2024 (accounting/records irregularities, disputes with major banking partner).

SPECIAL TOPICS – CREDIT CARDS & SCORES

There have been several new developments for credit cards & scores since a previous article on 9/7/24.

CREDIT CARD issuers & retailers have finally settled on high interchange fees (merchant charges):

1. There will be 3 categories of cards – standard, premium (with rewards), business. The interchange charges will be capped for standard cards for 8 years at 1.25%.

2. Merchants won’t be obligated to accept all types of cards from the same issuer. Retailers can choose to decline premium cards & others with fees above 1.25% from the same issuer. This lack of wide acceptance of major credit cards may create confusion for consumers. Merchants may also see decline in sales if lot of cards are rejected for fee-related reasons. Previously, the cards are declined only for credit or security reasons, often based on cardholders’ use patterns.

3. Merchants can add variable card fees (surcharges) with disclosures. This is also not seen as a consumer-friendly move that may slow the adoption of electronic payments.

Card issuers will be less likely to promote reward cards (almost 80% now). Consumers like them more than merchants.

CREDIT SCORES are important for the issuance of credit including credit cards. There are older FICO scores & newer VantageScores. Recently, the GSEs Fannie Mae & Freddie Mac have started using both FICO scores & VantageScore for mortgage application reviews.

Rents & BNPL credit may also be reported & used for scores on a more consistent basis by the credit reporting agencies. Consumers are frustrated that some of their monthly payments aren’t reflected in their credit histories & scores.

In an additional fee reducing move, FICO score & VantageScores will be available directly to businesses instead of only through credit bureaus. Many businesses want only the credit scores for initial screening & then look at the detailed credit reports if necessary.

For more information, see https://ybbpersonalfinance.proboards.com/